Panel: Return state aid to schools to pre-2011 level

Oct. 26, 2013

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A committee studying the school funding formula agreed last week to bring legislation during the next session that would increase what school districts spend per student to the level it was before cuts in 2011.

The Education Funding Formula Study Committee will propose a bill which would bring per-student allocation to $4,805 at a cost of about $23 million.

In eliminating a structural budget deficit in the 2011 session, the Legislature reduced ongoing school funding by 8.6 percent compared to the previous school year. Including some one-time money from the state, schools ended up with a 6.6 percent cut.

The committee’s move to propose a bill narrowly passed in a vote of 8-7.

Committee members in support of the move said funding the formula would give schools back the tools to support students.

“I think an important aspect of government is credibility, and right now, nationally, across America, there’s a lack of government receiving the respect of credibility, and I fear that we have kind of slipped into that trap by not fully funding the formula,” said Sen. Bill Van Gerpen, R-Tyndall. “I think if we had maintained the formula, we could have made our obligations financially.”

Sen. Chuck Welke, D-Warner, agreed.

“We’ve got to get there ($4,805) somehow, because we are starving our schools, and they are hurting very badly,” he said. “The $4,805 is something most schools, most districts, most state legislators can support as a starting point.”

But lawmakers who voted against the proposed bill said while they support education, they had concerns over setting aside $23 million for education, when there are a number of other areas to fund as well.

“You don’t just take care of one child and forget the other five,” said Sen. Larry Tidemann, R-Brookings, who voted against the committee’s proposal. “I fully support education, but $23 million is a sizable chunk. I have to see what else there is to be taken care of.”

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Tidemann said he also felt uncomfortable with giving schools more money with no accountability that tied it to graduation and success rates.

He said it’s more feasible to move forward an increase in the per-student allocation incrementally, to bring it up over time.

In September, school administrators across the state testified in front of the committee and told of their struggles in providing services for students, as well as attracting and retaining high-quality teachers.

Some schools have had to cut programs or increase class sizes, the administrators said, and they consistently lose teachers to higher paying jobs, or can’t get any qualified applicants at all.

Increasing the per-student allocation is a step in the right direction, some school administrators say.

“That would do wonders for our district,” said Jennifer Lowery, superintendent of the Tea Area School District. “It’s very much appreciated, and it’s truly what’s best for kids and students.”

The Tea Area School District, which spends the least amount per pupil in the state, operates nine “stick buildings” to help accommodate the continued growth of the district.

“What a profound statement those legislators are making, to say we listened to educators and we are committed to taking care of our kids,” Lowery said.

Wade Pogany, executive director of the Associated School Boards of South Dakota, said $4,805 isn’t a magic number, but it’s a realistic goal to start with.

“Schools are really struggling to make ends meet,” he said.

The committee was formed earlier this year in response to school districts’ criticisms that the current funding formula is not enough.

The state funding formula requires that each school district budget spend the same amount per student from a combination of local property taxes and state aid.

Once a school district collects property taxes using a standard statewide levy, it receives enough state aid to bring total spending for general operations up to the required level per student. Smaller schools get extra state dollars.

South Dakota law requires that state aid to schools increase each year by the level of inflation, up to a maximum of 3 percent a year, but that number fluctuates, which can hinder school district planning.

The committee also plans to propose a bill in session that would establish a minimum annual funding increase of 2 percent for the state aid to education formula.